THE WORLD’S FIRST
PERSONALIZED TV.
Linius Investor Roadshow
February 2020
ASX:LNU
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This document has been prepared by Linius Technologies Limited (LNU). The information contained in this document is for information purposes only and has been prepared foruse in conjunction with a verbal presentation and should be read in that context.
The information contained in this document is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. Inpreparing and providing this document, LNU has not considered the objectives, financial position or needs of any particular recipient. LNU strongly suggests that investorsconsult a financial advisor prior to making an investment decision.
No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained inthis presentation. To the maximum extent permitted by law, none of LNU, its related bodies corporate, or their shareholders, directors, officers, employees, contractors, agentsor advisors, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of informationcontained in this document.
This document includes “forward-looking statements” within the meaning of securities laws of applicable jurisdictions. Forward looking statements can generally be identifiedby the use of the words “anticipate”, “believe”, “expect”, “project”, “forecast”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “target”, “plan”, “guideline”, “guidance” andother similar expressions. Indications of, and guidance on, revenue models, pricing, earnings and financial position and performance are also forward-looking statements.
Such forward-looking statements are not guarantees of future pricing, performance and events, and involve known and unknown risks, uncertainties and other factors, many ofwhich are beyond the control of LNU, its related bodies corporate, and their directors, officers, employees, contractors, agents and advisors, that may cause actual results todiffer materially from those expressed or implied in such statement. Actual results, performance or achievements may vary materially from any projections and forward-lookingstatements and the assumptions on which those statements are based. In particular, potential revenue opportunities and guideline pricing models set out in this document arebased on certain assumptions which may in time prove to be false, inaccurate or incorrect. Readers are cautioned not to place undue reliance on forward looking statementsand LNU assumes no obligation to update such information.
This document is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities in any jurisdiction, and neither thispresentation nor anything contained in it forms the basis of any contract or commitment. Without limiting the foregoing, this document does not constitute an offer to sell, ora solicitation of an offer to buy, any securities in the United States. The securities of LNU have not been, and will not be, registered under the U.S. Securities Act of 1933, asamended (Securities Act) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States except in compliancewith the registration requirements of the Securities Act and any other applicable securities laws or pursuant to an exemption from, or in a transaction not subject to, theregistration requirements of the Securities Act and any other applicable securities laws.
Disclaimer
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Vision & Mission
VISION:
To make all the world’s video accessible as data
MISSION:
To become the defacto standard for the management
and broadcast of video
COMMERCIALIZATION:
Linius patented Video Virtualization EngineTM (VVE) to
deliver to mass markets in 3 ways:
- Self service to global markets through a SaaS model
- Mass distribution through partners and re-sellers
- Industry specific divisions and solution sets built
around VVE
Having invested in and established the assets required to meet our
vision, we can now roll out across the video value chain.
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✓ We’ve targeted and won in Sports:
- Soccer / Football – SportsHero & Essendon Football Club
- Racing – Racing.com
- Basketball – National Basketball League (NBL)
✓ We’ve targeted and won in News:
- News aggregator - Newstag
✓ We’re now focused on 3 priorities:
- Win more and win BIG validating clients
- Deploying our most recent wins
- Exercising our model of replication
✓ In parallel we have partners engaged and ready:
- MSFT, IBM, AWS, Stats Perform, Akamai, Brightcove, Oxagile
We are tech ready, patent ready, commercially ready and our partners are engaged.
Status:
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Linius has published market research on the appeal & propensity to purchase personalized channels
96% of respondents said they would be likely to use a personalized channel if it were offered as an additional service by their TV provider.
77% of respondents said they would be more likely to renew their subscription if they were offered personalized channels.
£14.30 (A$27) per month is the average price respondents said they would pay for their own personalized channel, on top of existing subscription fee.
Quantum Market Research - The Future of TV Market Demand, November 2019. Full research report can be accessed at https://try.Linius.com/personalizedchannels
9.2 hours per week is the average time respondents said they spent watching football and football related news.
It is purposely
simple. We virtualize
the video, enrich it
with metadata, and
play out personalized
videos.
Based upon each subscriber watching 18 hours per month. The Quantum Market
Research indicated 40 hours is actually spent per month (9.2 hours per week).
SaaS – revenue model (utilizing our publicly available rate card)
Subscribers 2.5 million
Subscription (new) $5 per month
Client average revenue (new) $12.5M per month
Linius Revenue
Virtualization $0.0092 per min $41.40
Enrichment $0.300 per min $1,350
Personalization $0.0022 per min $3.15M per month
Linius revenue of $3.15M per month based on:- 50 new games per month, at 90 minutes per game- Each subscriber watching 18 hours per month
A simple example of a broadcaster with 2.5 million subscribers:
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• Linius tech in the SportsHero app and through ‘whitelabel’ solutions, including the mobile app, ‘Kita Garuda’,developed for the Football Association of Indonesia (PSSI).Kita Garuda mobile app being aggressively promoted toPSSI’s 80M fans across Indonesia.
• Successful launch of Replay Hub Stage 1. Search andassemble video on any horse, any jockey, any track – onthe fly. Second stage in development with personalizedchannels to feature race replays, Racing.com TV channeland racing news.
• Linius has entered into a Licensed Agreement with theNational Basketball League (NBL) for VideoPersonalization. NBL will be able to provide every viewerwith a hyper-personalized video experience.
• Essendon Football Club (EFC) is the first AFL Club to sign
up to the Linius Sports Club Solution. It focuses on
delivering operational and commercial benefits for a
sporting organisation’s proprietary media content.
Addressable MarketRecent Successes
• Global value of sports media rights was US$49.5b in2018, of which football accounted for 40%($19.8B).1 Sky Sport alone has 22.9 million subscribersglobally. 2
• The top 10 gambling companies in the world make up80% of global betting. Bet 365 alone has 45 millioncustomers.3
• Basketball has over 1 billion followers. Its a major sportin USA with NBA generating over $4.75 billion a year inrevenue.4 The NBA is broadcasted to 86M subscribersvia ESPN in the USA.5
Recent successes – we are on strategy to enter mega markets
1. Sports Business Consulting, Global Media Report 2018 / 2. thisismoney.co.uk/money/ 3. bet365.com.au / 4. totalsportek.com/most-popular-sports/ 5. thewaltdisneycompany.com/ 6. afl.com.au / 7. media.kayosports.com/aussies-cant-get-enough-sport
• The Australian Football League (AFL) has 1.1 millionClub Members,6 with fans watching 3.5 hours eachweek, (with some regular season games reaching over100,000 users). 7
News
Vision
Green light for global roll out
CorporateIncreased communication and compliance
Commercial POC completed, Co-sell agreement w/ MSFT signed, On boarding MSFT with initial briefings completed.Metadata generated by Microsoft’s Video Indexer.Technology market ready and deployed.
Security
& Defense
Education
Strategy Status
Personalization delivers the answer to driving news subscription
Instant actionable intelligence
Enhanced learning and research
Partner withnews aggregators and news clients
Engage advisors to facilitate introductions
Outsource via product integrations
Commercial POC’s completed , First aggregator partnership – Newstag.Metadata available through AI, predominantly MS Video Indexer.Technology market ready and deployed.
Commercial Deep engagement with UK agencies. Early engagement with US agencies.Metadata Available through AI.Technology available and deployable off the shelf.
Commercial Currently integrating with Kaltura (6.7% OVP market share), promoting on Kaltura marketplace; signed agreement with Media Amp, market leader in the US.Metadata Available through AI.Technology available and deployable off the shelf.
Outsource to Microsoft
Green light for global roll out
Green light for global roll out
Green light for global roll out
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Personalization beyond sports – other core verticals
Video on the Blockchain
We’ve partnered with IBM Aspera and
other major industry players to accelerate
the deployment of the Media &
Entertainment digital asset workflows on
the cloud, via an underlying digital asset
trusted network (DATN).
We showcased this with IBM at IBC -
International Broadcasting Convention -
in September 2019.
Only Linius can put the video assets on the
blockchain, unlocking the power of the blockchain to provide guaranteed, public,
auditable rights without requiring third-party
intervention.
Blockchain is great for solving a number of
problems
proof of ownership / rights
audit history
double spend
time and speed
We’ve proven it with a public
demonstration.
We’ve secured the necessary intellectual property.
We’ve architected the solution.
What is virtualization of video?
Indexing the original video data, creating a virtual video which contains no video data, but instead points to it in the origin file.
Virtualization is a two-part process:
Traditional Video Virtualized Video Virtualized Video
Accessible as Data
Personalized Data
Enhancements Added
Virtualized Video File
plus enhancements =
Intelligent Video
1. We virtualize an original video (usually in the client’s existing environment). This is the process of reading the headers of the video file and creating a database containing an index of all the important frames in the video, that serves as a basis for reconstructi ng video from the original encoding.
2. We then create virtual videos, which are a fraction of the size of traditional video files (well less than 1%), as they conta in no video data. These point back to the data within the original file. While all the data still needs to be streamed or downloaded, our ability to reassemble the data, on the fly, at the device, means that each virtual video can be unique — a new video for every play.
Making the world’s video – accessible as data
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$0.020
$0.025
$0.030
$0.035
$0.040
$0.045
$0.050
$0.055
Vo
lum
e Tr
aded
(m
illio
n)
Shar
e p
rice
(ad
j clo
se)
Volume Adj Close
Vision Volume/Value
Share Price (31 January 2020)
Market Cap
Total Shares on issue / listed on ASX
Total options on issue
Fully diluted shares on issue
Cash on hand as at 31 Dec 2019
Estimated cash spend Mar 2020 Quarter
Net Assets at 30 June 2019
A$0.029
A$34.18m
1,179m
20m
1,199m
$3.182m
$1.88
$5.5m
Major Shareholders %
Earthrise Pty Ltd / Archaea Pty Ltd
Technical Investing
Steve McGovern
Gerard Bongiorno
9.4
5.5
3.9
3.9
Share Price Performance
Register
Board Shareholding (%)
Board & Management Shareholding (%)
International Shareholding (%)
Total Shareholders
7.8
7.8
3.7
2,538
Corporate Overview
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Chris Richardson
Executive Director and CEO
Chris is an accomplished internetvideo executive with more than 20years of experience leading techcompanies in the US, Europe andAsia. Since 2010 Chris has held GMlevel roles in public and privatevideo technology companiesglobally, after spending 10 years inSilicon Valley leading productmanagement for VC funded start-ups.
Gerard is Principal and Co-CEO ofSapient Capital Partners, a merchantbanking operation and has over 30years of professional experience incapital raisings and corporateadvisory. Prior to forming Sapient(formerly Otway Capital), Gerard wasHead of Property Funds Managementat Challenger Financial Services Group(CFG) and was Group Special ProjectsManager at Village Roadshow.
Stephen has more than 20 yearsof experience as an executive intelecommunications, mediasales and pay TV. Stephen isManaging Director of cloud callrecording company, DubberCorporation Ltd [ASX: DUB].
Gerard Bongiorno
Executive Chairman
Stephen McGovern
Non-Executive Director
The Board
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